Jacob, A very thought provoking article, I just skimmed it since it is late here. Two quick comments. One is from Harry Dent, the Roaring 2000's author. He has claimed that a major difference between the U.S. and Japan at this time is demographics. He argued that demographics was a huge factor in the decline of the Japanese economy in the 90's, and suggests that we pretty much have the opposite situation here at this time. I don't know if he is right, but I thought I would present this to counter the argument made by the article somewhat.
Secondly, I have thought for a long time now that we should not be subsidizing residential real estate in America to the extent that we do. So, I agree with the article about that. It draws capital away from manufacturing equipment, R & D, etc. for industry, and instead gives us two-by-four's and sprawling, energy inefficient housing that can't really be used to manufacture anything. Of course, the home is a big part of the American dream, but why subsidize this?
John |
